Business and Industry Guaranteed Loans

Business and Industry Guaranteed Loans are loan guarantees where the cost is a one-time, up-front fee of 2% of the amount guaranteed. A reduced fee may be obtained for a high impact business in a persistently poor community. Loan purposes include purchase and expansion of land, equipment, buildings, working capital, aquaculture, commercial nurseries, tourist and recreation facilities, hotels, motels, community facility projects, housing development sites, apartment buildings and the purchase of stock in a cooperative where commodities are being produced by the members for processing by the cooperative. Loan funds cannot be used for lines of credit, gambling, golf courses, and agricultural production over $1 million or more than 50% of a project and when not part of an integrated agriculture processing business.

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Program Details
More Information and How to Apply

Program Details


Loans are made to businesses which save or create jobs in rural areas (under 50,000 in population). Borrowers may be an individual, partnership, cooperative, for-profit or non-profit corporation, Indian Tribe, or public body.


The maximum guarantee is generally 80% for loans up to $5 million, 70% for $5-10 million, and 60% for $10-25 million.


Typically 20 years for real estate, 7-10 years for machinery and equipment (depends on useful life), and 5-7 years for working capital.


Negotiated between the lender and borrower, the rate may be fixed or variable.


All collateral must secure the entire loan, and personal and corporate guarantees are required.

More Information and How to Apply

More Info:

More information about this program can be found in the Business & Industry Guaranteed Loan Fact Sheet.


Contact our State Office for more information. Click here for a pre-application form or here for a listing of full application materials.